MIRA INFORM REPORT

Report Date :

27.11.2012

IDENTIFICATION DETAILS

Name :	KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION
Formerly Known As :	KOREA AGRO-FISHERIES TRADE CORPORATION
Registered Office :	232, Yangjae-dong, Seocho-gu, Seoul, Korea, AT Center, Zip Code 137-130
Country :	South Korea
Financials (as on) :	31.12.2011
Date of Incorporation :	16.01.1980
Com. Reg. No.:	106-82-00944
Legal Form :	Corporation established by the government
Line of Business :	Administration of Agricultural, Forestry, Fishing and Hunting Affairs
No. of Employees :	570 employees

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
South Korea	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

South Korea - ECONOMIC OVERVIEW

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA

Basic

Company Name	KOREA AGRO-FISHERIES & FOOD TRADE CORPORATION (Ex. Company Name : KOREA AGRO-FISHERIES TRADE CORPORATION, “농수산물유통공사”) (Korean Company Name : “농수산식품유통공사”)
Registered Address	232, Yangjae-dong, Seocho-gu, Seoul, Korea
Building	AT Center
Zip Code	137-130
Tel	+82-2-6300-1114
Fax	+82-2-6300-1608
E-mail	outreach@kati.net ; yihjoo@kati.net
Website	www.at.or.kr
Trading Address	AT Center, 232, Yangjae-dong, Seocho-gu, Seoul, Korea (P.O.BOX 3212) (new Address System : 27, 27, Gangnam-daero, Seocho-gu, Seoul, Korea)
Tel	+82-2-6300-1114
Fax	+82-2-6300-1608
Other Address-Agricultural Marketing Training Institute	148-1, Dangsu-dong, Kweunsun-gu, Suwon, Gyeonggi, Korea
Tel	+82-31-4003512
Other Address-Gyeonggi Branch	13-6, Noryangjin-dong, Dongjak-gu, Seoul, Korea
Tel	+82-2-813-9340
Other Address-Incheon Branch	7-241, Shinheung-dong, Joong-gu, Incheon, Korea
Tel	+82-32-888-6161
Other Address-Gangwon Branch	370-7 Okcheon-dong, Gangrung, Gangwon-do, Korea
Tel	+82-33-647-0061
Other Address-Chungnam Branch	942, Dunsan-dong, So-gu, Daejeon, Korea
Tel	+82-42-488-8542
Other Address-Chungbuk Branch	211-5, Songjeong-dong, Heungdeok-gu, Cheongju-si, Chungcheongbuk-do, Korea
Tel	+82-43-273-4556
Fax	+82-43-266-2458
Other Address-Jeonnam Branch	1607-1, Woosan-dong, Gwangsan-gu, Gwangju, Korea
Tel	+82-62-944-2621
Other Address-Jeonbuk Branch	249-10, Palbok-dong, Deokjin-gu, Cheonju, Jeonbuk, Korea
Tel	+82-63-211-6178
Other Address-Gyungbuk Branch	126-4, Shincheon-dong, Dong-gu, Daegu, Korea
Tel	+82-63-741-5220
Other Address-Gyungnam Branch	815, Munhyun-dong, Nam-gu, Busan, Korea
Tel	+82-51-632-1282
Other Address-Jeju Branch	977-1, Nohyong-dong, Jeju, Korea
Tel	+82-64-746-9472
Type	Export/Import
Industry	Administration of Agricultural, Forestry, Fishing and Hunting Affairs
Main Business	Agricultural & Fishery Products, Administration of Agricultural, Forestry, Fishing and Hunting Affairs
Established (mm/dd/yyyy)	01/16/1980

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Public administration(93151500) -Public Administration Services Agricultural and fishery products price stabilization support services
Sell	Trade shows and exhibits(80141900)
Sell	Aid financing(84101600)
Sell	National food intervention policy or programs(85151704)
Sell	Commodity policy or projections services(80151501)
Sell	Distribution(80141700)
Sell	Development assistance(84101500)
Sell	Commercial sector manpower development(86101804)
Sell	World wide web WWW site operation host services(81112105)

CEO’s

Name	Kim Jae-Soo
Address	Suite 307-102, 726, Seongbok-dong, Suji-gu, Yongin-si, Gyeonggi-do, Korea
Date of Birth	02/20/1957
Title	President
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)	66,200,000,000
Employees	570
Formation	Corporation established by the government
Bank Details	The National Agricultural Co-Operative Federation (Nonghyup Bank)-aT Center Branch Korea Exchange Bank
Corporate Registered No.	114271-0001826
Business Registered No.	106-82-00944
Permit & Licenses	Int’l Trade No.: 871002
Shareholder Position	The Ministry of Finance & Economy(The Republic of Korea) has 100% shares.
Company History	11/30/1967:Founded as Agriculture & Fishery Development Corporation (AFDC) according to the “Law of Agriculture & Fishery Development Corporation” 08/1978:Implemented Price Stabilization Program 01/16/1980: Incorporated as the present name 03/1984:Initiated Marketing Promotion Program 04/1985:Established Training Institute for Agricultural Marketing 12/31/1986:Reborn as Agricultural and Fishery Marketing Corporation (AFMC) for the Settlement of Marketing & Promotional Functions 06/1991:Opened Flower Marketing Center 01/1992:Expanded Export Promotion Program 10/2002:Opened Agro-Trade & Exhibition Center, Seoul and moved to the present address 05/2005:Company name changed to Korea Agro-Fisheries Trade Corporation(aT) 01/26/2012 Changed company name to the present name

Management

Job Description	Title	Name	Sex	Nationality	Date of Birth
President	Mr.	Kim Jae-Soo	Male	Korean	10/24/2011
Director	Mr.	Kang Kyung-Koo	Male	Korean	09/30/2010
Director	Mr.	Baik Hyun-Ki	Male	Korean	09/30/2010
Director	Mr.	Cho Pyung-Hee	Male	Korean	01/12/2011
Director	Mr.	Park Jong-Seo	Male	Korean	03/15/2011
Director	Mr.	Kim Yang-Hwan	Male	Korean	08/24/2011
Director	Mr.	Hur Hoon-Moo	Male	Korean	12/08/2011
Director	Mr.	Yoon Jung-In	Male	Korean	09/12/2012
Director	M/S.	Jang Jung-Ok	Female	Korean	10/09/2012
Director	Mr.	Jung Jong-Soo	Male	Korean	10/09/2012
Director	Mr.	Moon Jin-Young	Male	Korean	11/02/2012
Auditor	Mr.	Lee Kook-Hee	Male	Korean	05/20/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2011	220,779,776,245	1,168,803,059,362	11,195,408,437
2010	217,700,902,183	1,055,032,399,256	10,259,456,674
2009	190,037,253,406	1,000,646,528,868	5,115,849,961
2008	158,863,677,483	909,595,008,406	8,595,614,573
2007	239,421,402,739	865,089,245,149	5,612,702,268
2006	139,257,975,630	893,802,764,371	4,963,820,829
2005	230,179,988,391	845,018,486,995	2,040,501,551
2004	200,182,813,925	875,117,428,640	2,023,936,612

Financial Description

Authorized Capital(KRW)	200,000,000,000
Paid-Up Capital(KRW)	66,200,000,000
Total Issued Shares	13,240,000

Balance Sheet
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Total Assets	1,168,803,059,362	1,055,032,399,256	1,000,646,528,868
Current Assets	771,711,091,656	732,608,380,337	729,100,528,577
-Quick Assets	770,343,541,656	732,198,500,337	728,959,852,577
-Inventories	1,367,550,000	409,880,000	140,676,000
Fixed Assets	397,091,967,706	322,424,018,919	271,546,000,291
-Investment	297,153,680,780	228,020,607,901	175,841,305,730
-Tangibles	99,938,286,926	94,403,411,018	95,704,694,561
-Intangibles	-	-	-
Total Liabilities	994,317,051,341	911,073,769,182	865,927,628,989
Current Liabilities	675,192,238,181	653,244,562,472	638,108,164,149
Fixed Liabilities	319,124,813,160	257,829,206,710	227,819,464,840
Capital Stock	86,200,000,000	66,200,000,000	66,200,000,000
Capital Surplus	168,490,176	168,490,176	168,490,176
Profit Surplus	88,081,585,835	77,912,125,138	68,492,547,864
Capital Adjustment	35,932,010	(321,985,240)	-142,138,161
Total Equity	174,486,008,021	143,958,630,074	134,718,899,879
Liab. & Shareholder’s Equity	1,168,803,059,362	1,055,032,399,256	1,000,646,528,868

Current Liabilities	675,192,238,181	653,244,562,472	638,108,164,149
Short-Term Borrowings	588,359,518,960	579,574,387,730	574,555,391,940
Account Payables	28,539,744,338	26,948,084,902	17,290,801,207
Advance Receipts	910,328,420	587,806,660	470,682,803
Withholdings	5,522,560,589	5,709,273,956	5,032,031,490
Accrued Expenses	4,624,604,766	4,356,166,055	4,259,395,509
Accrued Income Tax	2,014,949,120	1,671,098,677	1,382,032,546
Unearned Income	81,737,510	28,011,073	51,761,530
Current Portion of Long-Term Debts	44,536,748,595	33,151,865,720	34,386,168,000
Other Current Liabilities	602,045,883	1,217,867,699	679,899,124
Fixed Liabilities	319,124,813,160	257,829,206,710	227,819,464,840
Long-Term Borrowings	301,483,269,856	240,246,228,280	211,222,094,000
Provision for Severance & Retirement	31,259,250,352	27,019,856,302	22,462,313,080
Leasehold Deposit Received	17,538,507,984	17,571,535,775	16,585,928,185

Income Statement
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Sales	220,779,776,245	217,700,902,183	190,037,253,406
Cost of Sold Goods	198,405,919,736	197,018,649,539	170,792,430,984
Gross Profit	22,373,856,509	20,682,252,644	19,244,822,422
Selling & Admin. Expenses	13,396,936,118	12,149,914,906	11,592,679,277
Operating Income	8,976,920,391	8,532,337,738	7,652,143,145
Non-Operating Income	6,925,634,916	5,663,149,631	4,326,437,012
Non-Operating Expenses	905,420,988	801,790,769	694,893,627
Income Before Taxes	14,997,134,319	13,393,696,600	11,283,686,530
Income Taxes Expenses	3,801,725,882	3,134,239,926	6,167,836,569
Net Income	11,195,408,437	10,259,456,674	5,115,849,961

Cash Flows
Unit : Korean Won	As of 12/31/2011	As of 12/31/2010	As of 12/31/2009
Cash Flows from Operating	6,807,046,917	15,559,296,134	15,286,813,946
-Net Income	11,195,408,437	10,259,456,674	8,398,760,880
-Exp. without Cash Outflow	9,773,965,767	10,864,594,340	8,870,924,531
-Revenue without Cash Inflows	-11,340,386	-167,532	-39,682,523
-Changes in Asset/ & Liability	-14,150,986,901	-5,564,587,348	-1,943,188,942
Cash Flows from Investing	-122,263,897,748	-32,965,658,347	-64,691,123,274
-Cash Inflow from Investing	658,544,604,036	65,485,543,550	53,278,930,281
-Cash Outflows for Investing	-780,808,501,784	-98,451,201,897	-117,970,053,555
Cash Flows from Financing	100,381,107,941	31,968,948,390	79,961,972,550
-Cash Inflows from Financing	743,231,000,000	674,051,000,000	683,562,994,000
-Cash Outflows from Financing	-642,849,892,059	-642,082,051,610	-603,601,021,450
Increase/Decrease in Cash	-15,075,742,890	14,562,586,177	30,557,663,222
Cash at the Beginning of Year	110,836,810,817	96,274,224,640	65,716,561,418
Cash at the End of Year	95,761,067,927	110,836,810,817	96,274,224,640

Products, Technologies, Services Description

Main Products & Services	aT(Korea Agro-Fisheries Trade Corp.) is a wholly government-invested enterprise responsible for agricultural marketing services and international trade. aT provides publicly-profitable support services in agricultural marketing sector. The Subject has performed its own export sales as well as undertaking export agent functions for a large number of small and medium size agro-processors.
Main Products & Services	-Price Stabilization Financial Support Method : Provision of raw material procurement loans Beneficiaries : Companies in the private agro-processing industry who purchase, store, and process designated items Direct Procurement Items : Red pepper, garlic, onion, seaweed, anchovies, and other staples Method : Disbursement of the agricultural product price stabilization fund during peak harvest seasons Storage Facilities : 20 aT warehouses located in Seoul, Busan, Daegu, Gwangju, Jeonju, Incheon, Daejon, and I-Cheon Capacity : 60,000 M/T per shift Release Methods : Auction, direct sale, and wholesale market distribution Period : When prices are rising in the off season Beneficiaries : Wholesalers, retailers, and bulk consumers Import Items : Products with poor harvests or weak domestic production bases (e.g., sesame seed, red bean, soybean) and MMA/CMA imports such as red pepper, garlic, and onion Period : Year-round, according to each item's domestic market situation -Foreign Trade Promotion Operation of Overseas Agri-Trade Center Locations : Japan (Tokyo, Osaka), Netherlands (Rotterdam), U.S.A. (New York, LA), Russia (Moscow), Singapore, and China (Beijing, Shanghai) Roles : Collection of agricultural & fishery trade information, promotion of sales, and public relations development in overseas markets Methods : Participating in major international exhibitions, improving packaging design, operating Korean traditional food exhibitions and temporary overseas exhibitions, advertising in popular foreign food magazines, and installing export public relation towers in important partner trading countries Effects : Developing overseas markets and improving the image of Korean agricultural & fishery products Development of Marketable Item Method : Testing Korean foods in overseas markets and modifying their taste and quality to meet consumer preferences Items : Competitive export products such as fruits (apples, pears), vegetables (egg plants, cucumbers), flowers (lilies, roses), and processed foods (kimchi, ginseng-chicken soup) Collection & Dissemination of Trade Information Data collected : Domestic and overseas production levels, prices, and import/export market situations for each prospective foreign trade item Publishing Methods : Korea Agricultural Trade Information (KATI) network Korea Agriculture and Food Monthly Magazine Operation of Agro-Trade & Exhibition Center Location : Yang Jae-dong (Seoul) Function : Promotion of foreign trade in the agro-fishery industry Launch Year : 2001 Major Facilities : Exhibition halls, Conference rooms, Agro-Trade information center, Agro-Trade office building, Export Publicity Pavilion
Main Products & Services	-Marketing Support Wholesale Market Guidance & Support Financial Assistance : Wholesale market construction loans, advanced payment loans, and shipping promotion loans Market Support : Farm products collection and distribution activities (in respect of fair trading practices) Auctioneer Management : Education and qualifying examinations for auctioneers Personnel Training Training Organization : Agricultural Marketing Training Institute (Est. 1985) Trainees : Government officials, auctioneers, jobbers, and marketing personnel in the field of production Collection & Dissemination of market Information Scope of Enumeration: Cultivation areas, crop situations, supply levels, and shipping trends of 20 major agricultural and fishery products Distribution channels and wholesale/retail prices of 70 selected items Standardization of Physical Distribution Standardized Practices : Transportation, storage, loading, unloading, packaging, and marketing Flower Marketing Center Location : Yang Jae-dong (Seoul) Functions : Providing flower marketing loans and price information, holding flower fairs and exhibitions, ensuring the fair trade of flowers by competitive auction and improvement of the marketing system, and providing an export base for prospective items such as lilies and roses Main Facilities : Auction hall, jobber shops, cut flower sales space, green houses, and ornamental gardens -Food Industry Support Supporting Food Processing Companies in Rural Industrial Complex Selection of Qualified Firms : Based on business feasibility of food processing companies who apply to set up plants in rural industrial complexes Supporting Methods : Provision of facility investment loans, business management and technology information services, and sales promotion Development of Food processing Companies in Production Areas Selection of Qualified Firms : Based on business feasibility of applicants Supporting Methods : Provision of financial support, managerial guidance, sales promotion, personnel training, information services, and operation of consultation councils

Trade Partners & Competitors

Competitors

NATIONAL AGRICULTURAL COOPERATIVE FEDERATION 75, CHUNGJEONGNO 1-GA, JUNG-GU, SEOUL, KOREA TEL:+82-2-2080-5114 FAX:+82-2-2080-6016 KOREA AGRICULTURAL COOPERATIVE MARKETING, INC. NONGHYUP HANARO CLUB, 230, YANGJAE 2-DONG, SEOCHO-GU, SEOUL, KOREA TEL:+82-2-3498-1000 FAX:+82-2-3498-1210

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

Overseas Office	KOREA AGRO-TRADE CENTER, ROTTERDAM VARESEWEG 1, 3047 AT ROTTERDAM, THE NETHERLANDS TEL : 001-31-10-415-1091 KOREA AGRO-TRADE CENTER, NEW YORK 107 NORTHERN BLVD. SUITE 405 GREAT NECK, NY 11021, USA TEL : 001-1-516-829-1633 KOREA AGRO-TRADE CENTER, SINGAPORE 101 CECIL ST., #22-10,11,12 TONG ENG B/D SINGAPORE 069533 TEL : 001-65-324-0402 KOREA AGRO-TRADE CENTER, BEIJING BEIJING SILVER TOWER ROOM 1506, #2, NORTH DONGSANHUAN RD, BEIJING, 100027, CHINA TEL : 001-86-10-6410-6120 KOREA AGRO-TRADE CENTER, SHANGHAI ROOM 3112, NEW TOWN CENTER NO.83, #2, LOU SHAN GUAN RD., CHANGNING DISTRICT, SHANGHAI, 200336, CHINA TEL : 86-21-6236-8341-2 KOREA AGRO-TRADE CENTER, TOKYO 5F, DAVINCI SHINJUKU GYOEN, 1-5-1, SHINJUKU, SHINJUKU-KU, TOKYO, 160-0022, JAPAN TEL : 001-81-3-5367-6656 KOREA AGRO-TRADE CENTER, OSAKA 6F, NOMURA FUDOUSAN OSAKA BLDG. 1-8-15, AZUCHIMACHI, CHUOU-KU, OSAKA, JAPAN TEL : 001-81-6-6260-7661 KOREA AGRO-TRADE CENTER, L.A. HUNTINGTON PLAZA, 5762 BOLSA AVE. #101 HUNTINGTON BEACH CA 92649, USA TEL : 001-1-714-901-7717 KOREA AGRO-TRADE CENTER, MOSCOW KRASNOPRESNENSKAYA NAB., 12, ENT.B, #1002, MOSCOW, RUSSIA, 123610 TEL : 7-095-258-1397
Subsidiary	KOREA AGRO-TRADE CENTER, SINGAPORE KOREA AGRO-TRADE CENTER, ROTTERDAM
Cooperative Enterprise	-Insured Company SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078) GREEN NON-LIFE INSURANCE CO., LTD(110111-0007082)

Sales by Region

(Activity & Markets)

The Subject deals with the companies in China, Taiwan, France, Hong Kong, Japan and USA.

Court Action

Not Available.

News Clipping

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FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.69
UK Pound	1	Rs.89.20
Euro	1	Rs.72.10

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.